August 8, 2011: Global Services (GS) has published the GS 100 report on ITO. This is the sixth edition of this annual report. They recently presented the key findings in a webinar and it was conducted by Hildebrando. Report mainly covers upcoming trends, risk and scope of information technology outsourcing.
Every year Global Services conducts this survey known as GS 100 to find out leaders and performers in the Information Technology Outsourcing (ITO) sector. Presence of eminent personalities participated like Mr. Ed Nair, Editor, GS and Mr. Atul Vashistha, chairman, Neogroup made the webinar more interesting.
Let us have a look at some of the key findings of this report. The report says that there is huge scope in the Information Technology Outsourcing (ITO) sector, even though there were many ups and downs in the market over the last few years. According to the report 2010 was pretty good as the industry showed some positive signs of revival after a couple of strong windy years.
As per the report, 2011 is again predicted as a good time for IT outsourcing firms. However the report also talks about some of the risk elements pertaining to the growth of this sector as a whole like increasing labor cost in markets like India.
There was discussion on many findings from the survey conducted on the occasion. The key findings were related to the recent trends in the information technology outsourcing (ITO) sector.
According to the findings there is a huge scope in cloud computing. Many companies are focusing on cloud based infrastructure. There is also wide scope for social media as well.
Increase in number of mid-sized entrepreneurs has also resulted in upward trends in ITO. There was also discussion on the huge market availability in the Latin American countries. As focus on nearshore market is increasing, it is necessary for India to maintain its presence in the market through technology leadership and superior customer servicing.
Retaining clients, expansion and change in pricing strategies are the other major findings in the report. It was also found out that the buyers are now looking at long term relationship with the suppliers. Key areas in IT outsourcing which are expected to grow include application development, infrastructure management, product development and engineering services in addition to cloud management and social media optimization.
The report concluded that the information technology sector is expected to do well in the coming year. According to the report the global the information technology outsourcing companies have to focus on the unexploited scope in this sector and build strategies to meet the changing requirements.